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Agreement For Transfer Of Shares
"I need an Agreement For Transfer Of Shares for the sale of 10,000 ordinary shares in my private technology company to a venture capital firm, with payment to be made in three installments and including non-compete provisions for key shareholders."
1. Parties: Details of the Transferor (Seller) and Transferee (Buyer) including their complete legal names, addresses, and registration details if companies
2. Background: Brief description of the company whose shares are being transferred, the current shareholding, and the context of the transfer
3. Definitions: Definitions of key terms used throughout the agreement
4. Subject Matter of Transfer: Details of shares being transferred including number, class, and distinctive numbers
5. Consideration: Purchase price for the shares and payment terms
6. Completion: Details of when and how the transfer will be completed, including delivery of share certificates and payment mechanics
7. Seller's Representations and Warranties: Warranties regarding ownership, authority to sell, absence of encumbrances, etc.
8. Buyer's Representations and Warranties: Warranties regarding authority to purchase, financial capacity, etc.
9. Tax Provisions: Responsibilities for payment of taxes, capital gains tax, and stamp duty
10. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction for disputes
11. Notices: Process and addresses for serving notices under the agreement
1. Multiple Sellers Clause: Required when there are multiple transferors, defining their rights and obligations
2. Encumbrance Discharge: Needed if the shares are currently subject to any liens or encumbrances that need to be discharged
3. Board Approval: Required for private companies where board approval is needed for share transfer
4. Right of First Refusal Waiver: Needed if existing shareholders have waived their right of first refusal
5. Non-Compete and Non-Solicitation: Important when the seller is a key person in the company
6. Regulatory Approval: Required when the transfer needs specific regulatory approvals
7. Foreign Exchange Compliance: Needed when either party is a non-resident Indian or foreign national
8. Pre-Completion Covenants: Required when there's a gap between signing and completion
1. Schedule 1 - Details of the Company: Complete corporate information including registration number, registered office, directors, etc.
2. Schedule 2 - Details of the Sale Shares: Comprehensive list of shares being transferred including share certificate numbers
3. Schedule 3 - Consideration Calculation: Detailed breakdown of how the purchase price was calculated
4. Schedule 4 - Completion Requirements: Checklist of documents and actions required for completion
5. Schedule 5 - Warranties: Detailed list of warranties given by the seller
6. Appendix A - Share Transfer Form: Standard form for transfer of shares (Form SH-4 under Companies Act)
7. Appendix B - Board Resolution: Copy of board resolution approving the transfer (if applicable)
8. Appendix C - Regulatory Approvals: Copies of any required regulatory approvals
Authors
Banking & Financial Services
Information Technology
Manufacturing
Real Estate
Healthcare
Retail
Professional Services
Energy & Utilities
Telecommunications
Media & Entertainment
Education
Logistics & Transportation
Construction
Agriculture
Legal
Finance
Corporate Secretarial
Compliance
Risk Management
Corporate Development
Investment Banking
Board Secretariat
Corporate Affairs
Treasury
Chief Executive Officer
Chief Financial Officer
Company Secretary
Legal Counsel
Corporate Lawyer
Investment Banker
Financial Controller
Compliance Officer
Board Director
Managing Director
Share Transfer Agent
Corporate Finance Manager
Business Development Manager
Risk Manager
Transaction Advisory Manager
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